If you are looking for ways to make your credit sparkle and your FICO scores higher then you have found the right article to read! In the few short paragraphs below i will give you some proven sound advice that you can use to cleanup your credit and increase your FICO scores even if you have no credit or bad credit.
Where To Start Off Fixing Your Credit
First you have to answer this questions, "Why is your credit bad"? The answer can really come down to two answers. Either you have no credit history or you have a bad history full of negative information. Both can be remedied but they require a different approach.
If You Have No Credit History
This is a problem because your credit scores and history of how you have paid your bills is very important to potential lenders. If you have no history to be judged on chances are that you will not get approved for anything like a mortgage, high limit credit card or even a car loan.
The best way to establish credit history when you have none is to start with smaller accounts like department store cards or gas cards. These are generally given to people with little to no history and when used with common sense and restraint they can set the foundation for you to move up to bigger and better accounts.
Your end goal should be to have 3 good solid trade lines like a department store card, major credit card and some other type of account. Just remember to keep the balances at or under 50% of the account limit and never pay late!!
What If Your Credit History Is Terrible!
This will require a different approach and the best way to do this is to use a combination of secured credit accounts and self credit repair methods. Lets start with the secured credit card. This is a card that normally has a lower limit like $250-$500 and will function just like a normal charge card would.
As a borrower you are required to deposit the amount of the accounts limit into an account that the lender holds. In the event of a default by you they keep what you owe them and return the rest and cancel the account. But if you cancel the account with no balance or they change your card to unsecured account you get your money back, basically the only way you can lose the money is by not paying your bills. The security deposit makes it very easy to get approved even with a bad credit history, so take advantage of them and start rebuilding your credit.
What About Repairing My Credit Myself?
Self credit repair is a process of cleaning up your credit where you dispute any negative or incorrect information that is appearing on your credit report. It is done by sending a credit dispute letter into the major credit bureaus for the account in question who will then question the original lender and ask them for proof of the negative activity. By law if the credit bureau hears no reply from the original lender within 30 days they must remove the item from your credit report.
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How Do You Draft a Credit Repair Letter
The process of Self Credit Repair is very involved and as much as i would like to, i just cannot explain it thoroughly in an article of this length. However if you are serious about Self Credit Repair and would like to see the programs I recommend that will help you understand self credit repair and boost your credit scores fast log onto http://www.creditfix123.info
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